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Foreigners buy more than 1 trln yen in Japanese stocks for second straight week

Nov 19 (Reuters) - Foreigners purchased more than a trillion yen worth of Japanese equities for the second straight week, as coronavirus vaccine developments showed promise and upbeat earnings of domestic firms boosted confidence about a swift economic recovery.

Overseas investors were net buyers of stocks worth 1.06 trillion yen ($10.21 billion) in the week ended Nov. 13, after purchasing 1.1 trillion yen in the previous week, data from Japanese exchanges showed.

They secured 673.88 billion yen worth of derivatives and 384.24 billion yen in cash equities markets.

Last week, vaccine-related developments raised investors’ expectations for a swift global economic recovery from the COVID-19 pandemic.

Pfizer and German partner BioNTech SE said last week their experimental COVID-19 vaccine was more than 90% effective based on initial trial results.

Upbeat earnings results from several Japanese firms also boosted investor sentiment last week.

Toyota Motor and Honda Motor both raised their earnings outlook, while internet service provider DeNA reported a four-fold increase in operating profit.

The Nikkei share average jumped 4.4% last week, hitting a near 29-1/2-year high, while the Topix index added 2.7%.

Meanwhile, Japanese investors sold overseas equities worth 270.8 billion yen last week, marking their biggest weekly net selling since mid-September, finance ministry data showed. ($1 = 103.8400 yen)

Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Subhranshu Sahu

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